TDS (Tax Deduction at Source) and TDS Rate Chart
As we know, Total income of an assessee for the previous year is taxable in relevant assessment year. But most of the time, Income tax is recovered from the assessee in the previous year itself by using different provisions related to advance tax, TDS etc. In this post we are going to show TDS rate chart which includes different type of tds rates applicable on different type of transactions.
In this post we will get to know about everything about TDS Rate Chart with TDS rate and applicable threshold.
What is TDS??
TDS is tax deduction at source. Tax at the rate prescribed should be deducted at the time of payment and it must be deposit to the credit of Central government within prescribed time. TDS rate chart will help you to ascertain tds rate on certain type of payments.
1) TDS RATE CHART [For Assessment year 2019-20]
| Particulars | Threshold | TDS Rate chart |
| Section 192: Payment of salary | Basic Exemption limit | Normal Slab Rate |
| Section 192A: Payment of accumulated balance of provident fund which is taxable in the hands of an employee (with effect from 01.06.2015). | Rs. 50,000. | 10% |
| Section 193: Interest on securities | Rs.10,000. | 10% |
| Section 194: Dividend other than the dividend as referred to in Section 115-O | Rs,2,500 | 10% |
| Section 194A: Income by way of interest other than “Interest on securities” | Rs. 10,000. | 10% |
| Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort | Rs. 10,000. | 30% |
| Section 194BB: Income by way of winnings from horse races | Rs. 5,000. | 30% |
| Section 194C: Payment to contractor/sub-contractor | ||
| a) HUF/Individuals | Rs. 30,000. for single payment and Rs. 1,00,000. for aggregate payment during Financial Year. | 1% |
| Section 194C: Payment to contractor/sub-contractor | ||
| b) Others | Rs. 30,000. for single payment and Rs. 1,00,000. for aggregate payment during Financial Year. | 2% |
| Section 194D: Insurance commission | Rs.20,000. | 5% |
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| Section 194DA: Payment in respect of life insurance policy
| Rs. 1,00,000. | 1% |
| Section 194E: Payment to non-resident sports person / entertainer / sports association (Income referred to in section 115BBA) | ——————- | 20% |
| Section 194EE: Payment in respect of deposit under National Savings scheme | Rs. 2500. | 10% |
| Section 194F: Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India | ———— | 20% |
| Section 194G: Commission, etc., on sale of lottery tickets | Rs.15,000. | 5% |
| Section 194H: Commission or brokerage | Rs.15,000. | 5% |
| Section 194-I: Rent | ||
| a) Plant & Machinery | Rs. 1,80,000 | 2% |
| b) Land or building or furniture or fitting | 10% | |
| Section 194-IA: Payment on transfer of certain immovable property other than agricultural land. | Rs. 50,00,000. | 1% |
| Section 194-IB: Payment of rent by Individual or HUF (not liable for tax audit) | Rs. 50,000 pm. | 5% |
| Section 194J: Any sum paid by way of : a) Fee for professional services, technical services. b) Royalty. c) Remuneration/fee/commission to a director. d) For not carrying out any activity in relation to any business. e) For not sharing any know-how, patent, copyright etc. Note: With effect from June 1, 2017 the rate of TDS would be 2% in case of payee engaged in business of operation of call center. | Rs.30,000.
| 10% or
2% ( for person engaged in call center business) |
| Section 194LA: Payment of compensation on acquisition of certain immovable property Note: With effect from April 1, 2017, no deduction of tax shall be made on any payment which is exempt from levy of income-tax under Right to Fair Compensation Act, 2013. | Rs.2,50,000. | 10% |
| Section 194LB: Payment of interest on infrastructure debt fund (Applicable where Person (other than company) is Not Resident in India Or Being a Company other than domestic company) | —————— | 5% |
| Section 194LBA(1): Business trust shall deduct tax while distributing, any interest received or receivable by it from a SPV or any income received from renting or leasing or letting out any real estate asset owned directly by it, to its unit holders. | —————– | 10% |
| Section 194LBA(2): Business trust shall deduct tax while distributing any interest income received or receivable by it from a SPV to its unit holders. (Applicable where Person (other than company) is Not Resident in India Or Being a Company other than domestic company) |
——————- |
5% |
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| ||
| Section 194LBA(3): Business trust shall deduct tax while distributing any income received from renting or leasing or letting out any real estate asset owned directly by it to its unit holders. Applicable – : Where Person(other than company) is Not Resident in India: Being a Company other than domestic company |
——————– |
30%
40% |
| Section 194LBB: Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)]. Applicable – : Where Person(other than company) is Resident in India/Domestic Company:- Where Person(other than company) is Not Resident in India:- Being a Company other than domestic company. |
——————– |
10%
30%
40% |
| Section 194LBC: Income in respect of investment made in a Securitization trust (specified in Explanation of section115TCA). Applicable :- Where Individual or HUF who is Resident in India (25%) :- Domestic Company (10%) :- Where Person(other than company) who is Not Resident in India or Person (other than Individual or HUF or Company) who is resident in India. (30%):- Being a Company other than domestic company. (40%) |
———————- |
25% 10% 30% 40% |
| Section 194LC: Payment of interest by an Indian Company or a business trust in respect of money borrowed in foreign currency under a loan agreement or by way of issue of long-term bonds (including long-term infrastructure bond) (Applicable where Person (other than company) is Not Resident in India Or Being a Company other than domestic company) |
———————-
| 5% |
| Section 194LD: Payment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor (Applicable where Person(other than company) is Not Resident in India Or Being a Company other than domestic company) Note: With effect from April 1, 2018 benefit of such concessional TDS rate has been further extended by three years. Now TDS at concessional rate of 5% will be applicable for borrowings made before July 1, 2020. | ——————— | 5% |
| Any Other Income (TDS Rates depends upon nature of Income and residential status and type of person etc.) | —————— | 10% or 15% or 20% or 30%. |
IMPORTANT POINTS:
- Mandatory requirement of furnishing PAN to the deductor. If payee does not furnish PAN to the payer, rate of tax would be flat 20% or prescribed rate of TDS whichever is higher. (section 206AA)
- Health & Education cess need not to deduct in most of cases.e.g Payments made(except salary or wages) to person who is resident in India and Domestic company.
Know about TDS Due date, TDS Payment and TDS penalties
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